Time To Pet + Stripe Capital
Time To Pet has partnered with Stripe to offer eligible businesses access to fast, flexible financing through the Stripe Capital program. Read more about this partnership here: Time To Pet + Stripe Capital.
IN THIS ARTICLE
Eligibility and Financing Types
Time to Pet businesses are automatically reviewed for eligibility and then Stripe sends eligible providers an email if their business qualifies for an offer. The criteria for eligibility is determined by Stripe and based on a number of factors, including transaction volume and history with Time to Pet Payments powered by Stripe. Stripe re-evaluates your eligibility on a rolling basis, so if you’re not eligible today and take steps to move transaction volume from other payment sources to Stripe, you may improve the likelihood of receiving an offer. If you become eligible, you’ll receive a Capital offer email.
Each offer specifies the type of financing being offered, which might be a loan or merchant cash advance. You can’t request a particular financing type under the Stripe Capital program.
- Stripe Capital merchant cash advance: A merchant cash advance is a purchase of a merchant’s future receivables by YouLend; it’s not a loan or credit transaction. Purchased receivables are withheld from the merchant’s payment processing volume in a percentage specified in the YouLend Advance Agreement. Unlike a loan, there’s no fixed payment schedule or periodic debits. Instead, a merchant’s payments vary based on payment processing volumes.
- Stripe Capital loans: Business-purpose term loans are made by Celtic Bank to eligible merchants. These loans have a maximum term, and periodic payments. If withholdings from payment processing receivables don’t meet a minimum amount, shortfalls are debited from a linked bank account.
Offer Structure
If eligible, you’ll receive an email from Stripe with your personalized offers, and you can choose the one that works best for your business. Each offer will outline:
- The financing amount: the total amount that will be deposited into your bank account
- The flat fee: the fee you’ll pay over time in exchange for the financing amount – there are no other fees and or compounding interest
- The total amount owed: the sum of the financing amount and the flat fee
- The payment rate: the percentage of your daily card transactions processed through Time To Pet that will be withheld to pay the total amount owed.
Here’s an example offer you might receive:
- financing amount: 17,000 USD
- flat fee: 1700 USD
- total amount owed: 18,700 USD
payment rate: 12%
If you accepted the example offer above and were approved, you would receive 17,000 USD in the bank account associated with your Time To Pet Payments account within 1-2 days along with your usual payout. Stripe would then withhold 12% of your daily transaction total in addition to the usual processing fees until you’ve paid down the total amount owed of 18,700 USD (the 17,000 USD financed plus the 1,700 USD flat fee).
Payment
You’ll automatically pay the financing over time through a percentage of your transactions according to your payment rate. The payment process will begin automatically 1-2 business days after the funds have been deposited into your account.
If you would prefer to pay faster or pay the entire outstanding balance, you can arrange to make a manual payment in addition to the withheld amounts by clicking the ‘Make Payment’ button in your financing overview page. There are no additional fees for early payment.
Paying early doesn’t guarantee subsequent financing offers. Accounts are automatically reviewed for additional offers on a daily basis and Stripe will send you an email if you qualify for any additional offers.
To see a daily summary of your payment progress, see the financing overview page.
FAQs
How do you determine who qualifies for an offer?
Eligibility is determined based on a combination of factors, including overall sales volume and history with Time To Pet Payments. Eligible US businesses will receive an email if they have an offer available.
Do I have to pay interest?
No, you’ll pay one flat fee that does not change. You won’t pay any interest on top of this fee.
Will applying for an offer affect my personal credit rating?
Applying for financing through Stripe Capital might include a personal credit check under some circumstances, but this credit check doesn’t affect your personal credit score. If a personal credit check is required you will be notified during the application process.
Can I request a different offer amount?
When you log into your Time To Pet Dashboard, you can use a slider to choose a custom amount (up to the maximum offer amount). The financing fee and payment rate adjust based on the amount you choose.
When do I need to pay the flat fee?
The flat fee is included in your payment total so you'll automatically pay it through a fixed percentage of your sales until the total amount is paid.
How does payment work?
Payment is collected automatically through a percentage of your Time To Pet sales as they are processed which means you pay down more when business is busy and less if things slow down
What is a minimum payment?
For Stripe Capital loans, if your payments deducted from sales cover the minimum payment requirement for payment period, no action will be taken. If you have not met the minimum payment amount by the end of the payment period, Stripe will automatically debit your bank account or account balance the balance needed to meet your minimum payment. There’s no action needed on your part
How do I make my minimum payment?
If your payments deducted from sales cover the minimum payment requirement for payment period, no action will be taken. If you have not met the minimum payment amount by the end of the payment period, Stripe will automatically debit your bank account or account balance the balance needed to meet your minimum payment. There’s no action needed on your part.
After I accept an offer, how quickly will I get my funds?
If your application is approved, you’ll see the funds in your bank account typically in as soon as 2 business days. To make sure that funds are disbursed successfully, you must set a valid bank account as your primary payout method.
Can I have my Capital funds paid out to a card?
Stripe currently does not support the disbursal of funds to a card. To make sure that funds are disbursed successfully, you must set a valid bank account as your primary payout method.
What happens when my offer expires?
Each offer is available for 30 days. After that point, your business will automatically be re-evaluated to see if you’re eligible for an additional offer.
Can I pay my financing early?
Yes, you can make additional payments or pay the total amount owed in full at any point by clicking the ‘Make Payment’ button in your Dashboard. There are no additional fees for early payment.
Will paying early qualify me for a new offer?
Once you pay the total amount owed, you’ll automatically be evaluated for a new offer. Paying early does not automatically qualify you for a new offer.
How should I report these funds on my taxes?
Tax reporting is often dependent on your specific situation, so we encourage you to talk with a tax advisor to ensure appropriate accounting. In general, Stripe Capital funds would not be considered taxable income at the time of receipt, and the amounts withheld to satisfy your obligations are not tax deductible.
Who can I contact to learn more about the Stripe Capital program?
If you have additional questions about how our financing program through Stripe Capital works, you can contact our partners at capital-support@stripe.com.
Stripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the US, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances.